GRP Limited has informed the Exchange about Transcript of the Earnings Call held on Monday, 28th July, 2025 to discuss Company's operational and financial financial performance for Q1 FY 2026.
GRPLTD · price
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GRP Limited reported a soft Q1 FY26 with total income declining 2% YoY to Rs. 1,247 million, dragged by a 7% drop in volumes due to US tariff-related export headwinds and a planned plant maintenance shutdown. EBITDA fell 18% YoY to Rs. 109 million, with margins compressing to 8.7% from 10.5%, mainly because butyl reclaim (a key SKU contributing 40% of revenue) saw raw material costs surge 37%, eroding its premium margin. The non-reclaim rubber business grew 17% YoY, supported by polymer composites and custom die forms. The company has drawn down €7.5 million from a Proparco ECB facility and is targeting 50% renewable energy use by 2028. Its new crumb rubber plant is operational, tyre pyrolysis oil is in cold trials (commercial start expected Q2 FY26), and the recovered carbon black (rCB) plant is slated for end of FY26. Management indicated the integrated end-of-life tyre-to-energy vertical could generate Rs. 125–140 crore in revenue once fully ramped.
Near-term outlook remains weak as butyl margin pressure and export tariff issues are expected to persist for another 1–2 quarters, limiting earnings recovery. However, the new capex projects (crumb rubber, pyrolysis, rCB) and improving plastics recycling subsidiary provide longer-term growth optionality. Investors should watch Q2 FY26 for pyrolysis commercial launch and signs of butyl margin pass-through to customers.